Intrusion (INTZ) Q4 2025 Earnings Call Transcript

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Tuesday, March 24, 2026 astatine 5 p.m. ET

• Chief Executive Officer — Anthony Scott

• Chief Financial Officer — Kimberly Pinson

Anthony Scott: Well, convey you, Josh, and bully afternoon, and convey you each for joining america today. Fiscal twelvemonth 2025 was a twelvemonth that had an unexpected opening and an unexpected ending on with a fig of important merchandise milestones on the way. At the opening of the year, we improved our equilibrium expanse by afloat eliminating our past outstanding indebtedness and Series A preferred stock. At midyear, we rolled retired accumulation of our captious infrastructure solution to assistance safeguard indispensable assets similar water, powerfulness and telecom facilities. In the 3rd and 4th quarter, we expanded our entree to our Shield Cloud solution by making 2 variations of the merchandise disposable connected the AWS marketplace.

And towards the extremity of the year, we announced our concern with PortNexus to supply unafraid web extortion for their MyFlare information technology, which is being deployed astatine schools successful respective states. In conjunction with PortNexus, we besides launched the P.O.S.S.E program, which volition springiness sheriffs and different instrumentality enforcement agencies captious web extortion for their nationalist information networks. And our aviator acquisition with the P.O.S.S.E programme is encouraging with a precocious adoption complaint truthful far. And finally, we ended the twelvemonth with an unexpected hold successful the hold of the earlier mentioned captious infrastructure declaration with the Department of War. And I'll commencement my elaborate remarks with immoderate much penetration astir this unexpected end-of-year development.

Kim volition supply much details connected the wide numbers shortly, but our 4th fourth revenues decreased by 12%, compared to the anterior twelvemonth play arsenic a effect of the delayed timing of an expected declaration hold for our captious infrastructure technology. But for this delay, we had expected to amusement quarter-on-quarter increases successful revenue, and greater year-over-year summation successful gross overall. Now to beryllium clear, the outgo of providing the services for this captious infrastructure solution are included successful our operating expenses, but the expected gross is not and volition amusement up successful aboriginal periods erstwhile the declaration is extended.

The timing of this declaration hold was and remains affected by the operational and administrative constraints associated with the U.S. authorities shutdown, which constricted agencies' quality to initiate and process declaration actions during that period. And the concern is further impacted by the events related to the warfare successful Iran unfolding currently. This hold successful backing reflects a broader trend, affecting companies with U.S. authorities contracts, peculiarly those operating wrong the defence sector.